Starling Bank decline bounce back loan

andy1o1

After waiting two days for my bounce back loan application to be reviewed I received an email saying that they have declined the loan. Everything they asked for was sent to them and when I phoned them up to ask for a reason, they said that they cannot elaborate any further! Anyone else had this issue?

scrooger

Based on my twitter, plenty of people have been declined at the same time, last hour. All sole traders, all saying they are eligible. Looks like some kind of mass-declined. Not sure why.
You should try with a different bank. Tide starts giving loans next week. 

JakeMM

Some people have. The amount you ask for is self certified. In order to be declined, it means you’ve failed the fraud checks.

They perform a credit file search, and they look at your tax documents.

I would sign up for something like Clearscore and look at your name, address etc. Make sure everything matches. Then go through the files you submitted to Starling and make sure everything is legit on there as well.

What work do you do? It isn’t an industry that’s banned from applying for the loan? 

Unfortunately, Starling don’t elaborate on why you failed the fraud check - and they also don’t allow you to reapply. So you’ll need to find another bank and try again - but check your tax return and credit file first to make sure everything is watertight!

Grumpy_chap

The only thing I have noticed in some of the threads on here is there are some people saying something to the effect of "I started as self employed on 28th February, and have not yet registered as such with HMRC, but it means I don't get any help other than the bounce back loan.  Can I just say my 'projected turnover' is £200k and have the £50k loan and will it be possible with XXX bank even though I never banked with them before?  There won't be any checks is this is fraud, will there?"

IF that has been happening, even a little bit, then maybe Starling have just rejected everything.  It is unfortunate if that catches some genuine applicants.  It does say on the Starling web site that new sole trader business account applications are closed.

Maybe this is the evidence (even if a sledge hammer - nut scenario) that there is checking taking place.  It seems reasonable that the banks would do something by way of checks on applicants status and if there is nothing to substantiate a £200k turnover / £50k loan as reasonable, then maybe they decline.  Also KYC checks.

It may be easier for any applicants to use their own business bank that they have a relationship with as that should make the process easier, certainly evidencing that the applicant used a realistic turnover declaration.  Given the rules on fees and interest rates are the same with all banks, there is no benefit in shopping around.

Also, the BBSL is open until November so, if the funds are not desperately required immediately things may get easier if an applicant waits a while.  For a genuine new business that started before 1st March but has not yet opened a business account, this time can be used to open a business account and build a relationship with a bank, which might make the process smoother?

Obviously, it is possible that none of this applies to the OP.

Lyz_Fox

Not sure what’s occurring then as I opened a new Business and personal bank account wIt then last week, got the card through yesterday. 

Today I activated them, applied for the loan this morning, accepted at lunchtime and money in the bank by 6pm. 

Double check on the fraud side as mine is only a 3 year old business with not a huge turnover  

andy1o1

I did have a business account with Cashplus, however as they are not a bank I couldn’t get one with them, so I opened a Starling account last week and immediately got accepted for a business one to be able to apply.
my credit rating is poor but no issues for at least 3 years.
We have a cleaning company which began May 2019 and turned over just over 30k up to March 2020. 

Already tried with HSBC but have still not received a phone call back to set up a feeder account. We have no idea what we will do next other than sell our van an equipment to survive!

Grumpy_chap

@andy101 - I am sure you thought of this, but if you sell your van and equipment, then getting going again will be a lot harder.

Can you rattle up the initial entrepreneurial spirit you had last May when starting your business?  You have done quite well to start from nothing and build £30k turnover in less than the first year, so it would be a crime to let that fall away to nothing and, if you did, you would still need to develop a new long-term plan.  You do not say what type of cleaning you do but there is a possibility that, in the long-term, cleaning will be one of the sectors to benefit from Coronavirus as companies may look to enhanced levels / frequency of cleaning to demonstrate they are COVID-Compliant.

Here are some ideas where it might be possible to generate revenue doing cleaning work that are outside your normal cleaning that you are used to doing:

• domestic / residential - inside / outside, prep garden furniture for the summer?  windows?  driveways / patios?
• cars?  All the local car washes near us have closed, if someone called and equipped to do that as a mobile service for the same price as supermarket car wash usually charges, I'd bite their hand off.
• building sites?  I know site cabins are usually just disgusting but, maybe, these companies will now be willing to pay a cleaner to demonstrate they are making efforts to protect workforce.
• engage your regular Clients, even if they are closed.  Discuss how you can help then prepare and re-open and enhance the service to include more disinfecting etc. when they do re-open.
• engage your regular Clients, even if they are closed to offer periodic clean while closed (to prevent stagnation) and also offer pre-opening 'deep clean'.

Just some ideas, I am sure there are many others that you can think of.

You did not say whether you started as sole trader or Ltd Co.  If sole trader, then it looks like you will not qualify for SEISS (because of timing) but if Ltd Co, you may be able to apply for CJRS.  Otherwise it looks like UC and BBLS.

stratty

Lyz_Fox said:

Not sure what’s occurring then as I opened a new Business and personal bank account wIt then last week, got the card through yesterday. 

Today I activated them, applied for the loan this morning, accepted at lunchtime and money in the bank by 6pm. 

Double check on the fraud side as mine is only a 3 year old business with not a huge turnover  

Interesting. I'm in a similar situation. New Ltd Account with Starling.  Submitted by BBL application at 1430 yesterday.  Currently waiting for a decision.

silvercar

A tweet from Martin Lewis last night:
"Just wanted to say I am aware of all the complaints about @StarlingBank rejections esp for sole traders (and some say they've had credit checks). We'll try and find out what on earth's happening on Monday.

Meanwhile if rejected you can still apply at another bank. https://twitter.com/stevembsm/status/1261394796335075328"

fdkdes

JakeMM said:

Some people have. The amount you ask for is self certified. In order to be declined, it means you’ve failed the fraud checks.

They perform a credit file search, and they look at your tax documents.

I would sign up for something like Clearscore and look at your name, address etc. Make sure everything matches. Then go through the files you submitted to Starling and make sure everything is legit on there as well.

What work do you do? It isn’t an industry that’s banned from applying for the loan? 

Unfortunately, Starling don’t elaborate on why you failed the fraud check - and they also don’t allow you to reapply. So you’ll need to find another bank and try again - but check your tax return and credit file first to make sure everything is watertight!

Bounceback Loans are not to be credit checked, no document should be required aswell, especially if your a limited company. Its a self certify scheme, so if anyone is being asked for accounts etc then they are breaking the rules. 

Businesses from all sectors can apply for a facility. The business must self-certify to its lender the following:
✔ Confirm it is UK-based in its business activity, and established by 1 March 2020
✔ Confirm it has been adversely impacted by the Coronavirus (Covid-19)
✔ Confirm it is not currently using a government-backed Coronavirus loan scheme (unless using BBLS to refinance a whole facility)
✔ Confirm it is not in bankruptcy, liquidation or undergoing debt restructuring

Assessment of affordability and viability - The borrower is required to self-declare they meet the eligibility criteria for the scheme. Lenders do not have to assess a business’ affordability or viability. Lenders are not responsible for the borrower’s decision to borrow.

Businesses should check the British Business Bank website to find out which lenders provide Bounce Bank Loans. Businesses will be required to fill in a short online application form on their lender’s website, which self-certifies whether they are eligible for a Bounce Back Loan facility. Eligible companies will be subject to standard customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. 

mandyll57

I am an existing Starling customer having transferred from RBS under the transfer scheme in January and have been running all my business transactions through my account. I am eligible been in business 5 years submitted the tax forms as requested and still turned down and as others said cannot get Starling to give a reason. Reading what they say it would appear that they are saying my application is fraudulent but presumably they made the same checks when I opened my account with them. I have applied elsewhere but really disgusted that Starling is not supporting its existing customers.